IWM vs MEI: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Methode Electronics, Inc. (MEI) carry a correlation of 0.51, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and MEI?
Across a 3-year window, the weekly returns of IWM and MEI correlate at 0.51, moderate. Recent behaviour matches the longer record: 0.48 over 1 year against 0.51 over 3. Stretching to 5 years gives 0.50, with an annualized covariance of 774.7 %².
By 3-year correlation, MEI places #217 of the 320 assets tracked against IWM. Their recent paths diverged sharply: over the last 12 months MEI outperformed by 106.3 percentage points (+28.4% for IWM against +134.7% for MEI). One caveat on sizing: MEI is 3.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
IWM vs MEI: side by side
| IWM (iShares Russell 2000 ETF) | MEI (Methode Electronics, Inc.) | |
|---|---|---|
| 1-year return | +28.4% | +134.7% |
| 5-year return | +41.5% | -56.2% |
| Volatility (ann.) | 19.8% | 76.6% |
| Beta vs S&P 500 | 1.06 | 1.94 |
| Max drawdown (3Y) | -27.5% | -82.7% |
| Market cap | – | $0.6B |
| P/E (trailing) | – | – |
| Dividend yield | 0.91% | 1.29% |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
On the fund side, IWM sits in the Small Blend category at iShares, with $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | MEI |
|---|---|---|
| 2022 | -20.5% | -8.5% |
| 2023 | +16.8% | -47.9% |
| 2024 | +11.4% | -46.0% |
| 2025 | +12.7% | -40.5% |
| 2026 | +22.3% | +172.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and MEI good diversifiers for each other?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between IWM and MEI?
As of 2026-08-27, the correlation of weekly returns between IWM and MEI is 0.51 over 3 years, 0.48 over 1 year and 0.50 over 5 years.
Is MEI a good diversifier for IWM?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.51 mean?
On the −1 to +1 scale, 0.51 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-mei.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/iwm-vs-mei/)
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Related comparisons
Hubs: IWM correlations · MEI correlations
